RBC double upgrades Securitas seeing 'cleaner operation' in 2026

Securitas AB

01/12/2025 10:42

** RBC double upgrades Swedish security provider Securitas SECUb.ST to "outperform" from "underperform," anticipating "a cleaner operation" in 2026 following Stanley integration

** The brokerage believes the firm is reaching the end of its transformation, which should lead to "much better and more consistent" free cash flow and returns going forward

** A positive mix-shift towards its higher-margin technology and solutions business, which makes up around a third of sales, is expected to be a key driver for profits, it says

** A strengthening balance sheet, with gearing down significantly since the Stanley acquisition, gives options for either shareholder returns or bolt-on acquisitions, RBC notes

** Calling the stock's valuation "undemanding", the broker lifts its price target by over 40% to SEK 170, citing higher long-term margin and growth assumptions

** Out of 14 analysts that cover the Securitas stock, four rate it "strong buy"/"buy", six rate it "hold", and four -- "sell"/"strong sell", according to LSEG data

** The stock is up 1.6% at 1040 GMT

(Reporting by Marta Frackowiak)

((marta.frackowiak@thomsonreuters.com))